Consumer Sentiment Slips in September
U.S. consumer sentiment fell 5% in September as high prices and weaker economic expectations weighed on outlooks, though inflation expectations eased slightly.
WASHINGTON — U.S. consumer sentiment eased about 5% in September, according to the University of Michigan’s final monthly report released Friday, though it remains above the low readings seen in April and May.
The modest decline was widespread, touching nearly all demographic groups and all five index components. Sentiment among consumers with larger stock holdings remained steady, while those with smaller or no holdings reported weaker confidence. Politically, the survey showed a 9% drop for independents and a 4% decline for Republicans, while Democrats’ sentiment rose slightly.
The report noted that both national economic expectations and personal financial outlooks softened in September.
“Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year,” said Surveys of Consumers Director Joanne Hsu. “Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets.”
The report also showed inflation expectations for the year ahead eased slightly to 4.7% from 4.8% last month. Long-run expectations rose for the second consecutive month to 3.7%, remaining well below the 4.4% peak recorded in April.
Source: Source: University of Michigan, Surveys of Consumers
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